Polish Humanitarian Organisation Foundation Report for 2006 I. BANK DEPOSITS 2 II. VALUE OF SHARES HELD 2 III. REAL PROPERTY PURCHASED 2 IV. PURCHASE OF FIXED ASSETS WITH A VALUE IN EXCESS OF PLN 5,000 2 V. ASSETS AND LIABILITIES OF THE FOUNDATION 2 VI. INFORMATION ON REVENUES ACCRUING TO THE FOUNDATION WITH RESPECT TO THE PAID BENEFITS 2 VII. INFORMATION ON THE FOUNDATION’S SETTLEMENTS WITH THE STATE WITH RESPECT TO TAX LIABILITIES AND ON TAX RETURNS FILED 2 VIII. FINANCIAL INFORMATION 2 IX. IMPORTANT EVENTS CONCERNING INSTITUTIONAL DEVELOPMENT IN 2005 3 X. IRON CAPITAL PROJECT OF THE POLISH HUMANITARIAN ORGANISATION 3 XI. HUMANITARIAN AID - PERMANENT MISSIONS 4 1. Mission in Afghanistan 4 2. Mission in the Russian Federation 11 3. Mission in Iraq 16 4. Mission in Lebanon 17 5. Mission in the Palestinian National Authority 19 6. Sri Lanka mission 22 7. Mission in Sudan 24 XII. EMERGENCY 25 1. Water programme in Pakistan 25 2. Short-term aid for the inhabitants of the Central Java (Indonesia) after the earthquake 26 3. Rebuilding trainings and technical aid for the earthquake-stricken families in Indonesia 27 XIII. RECONNAISSANCE TRIP TO ISRAEL 28 XIV. THE WOODEN PUPPET PROGRAMME 29 XV. REFUGEE AID CENTRE 31 XVI. REPATRIATE AID PROGRAMME 37 XVII. HUMANITARIAN EDUCATION 43 XVIII. FUNDRAISING AND PR 53 1 Polish Humanitarian Organisation Foundation Report for 2006 I. Bank deposits with indication of the bank Bank BPH S.A: PLN 3,550,069.80 II. Value of bonds and shares held not applicable III. Real property purchased not applicable IV. Purchase of fixed assets with a value in excess of PLN 5,000 List of fixed assets No. Fixed asset Computer set 5,276.50 Optima telephone exchange 15,480.58 Access control system 20,156.84 Telephone and Internet network (fzw-0709 +PK 0215) 31,341.80 Security alarm system 8,144.72 RENAULT CLIO 3 5-d Extreme 1,6 55,150.00 ŁADA VAZ 21074 17,387.91 TOYOTA HILUX SURF 24,520.80 177,459.15 V. Assets and liabilities of the Foundation Total assets PLN 15,310,437.38 Total liabilities PLN 273,069.05 VI. Information on revenue accrued by the Foundation with respect to paid benefits not applicable VII. Information on the Foundation’s settlements with the state budget with respect to tax liabilities and information on tax returns filed. Personal income tax (on remunerations and commission contracts) is being deducted on an on- going basis pursuant to the monthly PIT-4 declaration. The said tax liability was settled in December 2006. Value added tax is being deducted in a timely manner pursuant to the monthly VAT-7 declaration. The said tax liability as at 31.12.2006 is PLN 50,872.00. The Foundation is exempted from corporate income tax. This means that it does not file CIT-2 declarations but only an annual CIT-8 declaration. VIII. Financial information The Polish Humanitarian Organisation does not run business activity. Statutory revenues of the Foundation are as follows: PLN 22,720,014.55 out of which: Cash revenue (receipts from natural and legal persons) PLN 3,565,066.81 Cash revenue (subsidies and grants) PLN 10,062,270.72 In-kind contributions: PLN 50,076.98 Free-of-charge services: PLN 499,181.76 Statutory expenses of the Foundation are as follows: PLN 15,307,700.16 out of which: Cash expenses Non-cash expenses In-kind contributions: PLN 153,388.94 2 Polish Humanitarian Organisation Foundation Report for 2006 Free-of-charge services: PLN 41,806,39. Administrative expenses of the Foundation: PLN 1,538,674.98 Remunerations Average annual employment of salaried staff: Employees’ gross remuneration (excluding social insurance contributions paid by the employer): PLN 2,252,908.44 Remuneration for contracts for a specific work and contracts of mandate (excluding social insurance contributions paid by the employer): PLN 288,049.78 Total gross remuneration (excluding social insurance contributions paid by the employer): PLN 2,540,958.22 Employees of the Polish Humanitarian Organisation did not receive any financial awards or bonuses in 2006. Members of the Polish Humanitarian Organisation’s Board of Directors do not receive any remuneration for their work in their respective positions. The Foundation has not granted any cash loans. 9 Sources of financing payments and donations from individuals: PLN 3,274,230.37 payments in virtue of donating 1% of tax due: PLN 840,095.18 local government and state administration: PLN 2,973,159.46 Polish NGOs: PLN 95,429.52 international organisations: PLN 672,625.02 EU organisations: PLN 3,312,968.08 UN organisations: PLN 3,008,088.64 Financial revenue: PLN 271,541.94 IX. Important events pertaining to institutional development in 2006 X. The Iron Capital Project of the Polish Humanitarian Organisation The process of choosing a company to manage PHO’s funds commenced in 2004. As a result of the selection process of the placed offers, the Investment Board recommended the company CA IB Investment Management to PHO’s Board of Directors. Because of the merger between CA IB IM and BPH TFI (CA IB IM was taken over by BPH TFI), the agreement between the Polish Humanitarian Organisation and CA IB was dissolved on December 20, 2005. The reason for this were doubts concerning tax exemptions referred to in article 17 par. 1 of the corporate income tax act. In the next selection process, the Investment Board recommended the company ING Investment Management to the PHO’s Board of Directors and the company has been managing the PHO portfolio since 19 May 2006. At the same time, PHO was taking part in the second contest for capital subsidies held by the Stefan Batory Foundation having submitted an application to obtain co-funding of the increase in the Iron Capital by a maximum amount of PLN 400,000. As was the case with the first contest, the condition to fulfil in order to receive the subsidy from the Stefan Batory Foundation was to raise the same amount as part of one’s own fundraising campaign. A subsidy of PLN 360,000 was granted to PHO by a decision of the Board of Directors of the Stefan Batory Foundation dated 12 September 2006. In December 2006, the Board of Directors of the Stefan Batory Foundation decided to grant another PLN 30,000 which is conducive to an obligation on the part of PHO to raise a total of PLN 390,000 by the end of the year 2009. Thanks to BPH S.A. bank, PHO managed to raise PLN 30,000 by the end of 2006. The portfolio was worth as at 31 December 2006: PLN 3,006,877.81. In view of the small amount of income to be utilised under the Rules and Regulations of the PHO Iron Capital, the PHO Board of Directors resolved to keep all funds in the investment account. 3 Polish Humanitarian Organisation Foundation Report for 2006 XI. Humanitarian aid 1. Mission in Afghanistan English language and computer science courses for girls at the Allahudin State Orphanage in Kabul Duration: Project 1: month year – March 2006 Project 2: April 2006 - Project background: In the period of radical rule of the Taliban government, the situation of Afghan women and girls worsened drastically – they were not allowed to attend schools, they could not do the jobs they had been trained to do, they had no public powers nor were they allowed to leave their homes on their own, unaccompanied by a male relative. The percentage of girls who attended primary school in the recent years is only 15%. In order to help to change the situation and provide the society with new opportunities for the future, girls need to be allowed to study which will, in turn, open the doors to social advancement. Description of actions undertaken: The objective of the projects run by PHO since 2005 is the improvement of the situation and provision of perspectives for the girls living at the Allahudin State Orphanage. As part of the project, girls aged 12 to 16 have taken part in English and computer science classes. Forty-nine girls took part in the first edition of the courses financed from the means provided by NOVIB. The beginner English course lasted for 6 months. The skills acquired during the course permitted the girls to continue the language course and to take part in the computer science classes in the following months. The girls needed to have a good command of basic English to understand the software instructions. The course participants received textbooks and study aids from PHO. The classes could be continued thanks to a subsidy from the British Embassy. In 2006, 34 girls continued to learn English in two groups at different levels of advancement – beginner and intermediate levels. Each girls takes part in 6 classes a week. Twenty seven girls from the orphanage took part in computer classes in one of the three groups corresponding to their level of advancement in computer skills. The groups with better computer command met 4 times a week, while the less advanced groups had two meetings each week. One class is 90 minutes. The progress of course participants is monitored on a regular basis. Results: The participation in language and computer classes improve the opportunities of the girls brought up at Allahudin State Orphanage to find work after they leave the care centre. The girls are very keen on learning, they quickly grasp the rules of English and actively participate in classes. The command of a foreign language and computer literacy are not only a valuable asset on the labour market but such skills also trigger further educational opportunities.